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UNITED STATES DEPARTMENT OF AGRICULTURE 
BULLETIN No. 456 

Contribution from the Office of Markets and Rural OrKanlzatlon 
CHARLES J. BRAND. Chief 



Washington, D. C. 



Febraary 5, 1917 



MARKETING CREAMERY BUTTER 



By 

ROY C. POTTS, Specialist in Marketing Dairy Products, and 
H. F. MEYER, Assistant in Marketing Dairy Products 



CONTENTS 



Page 

Introduction 1 

Uniform Quality of Butter an Important 

Market Requirement 2 

Packages for Bulk Butter 3 

Preparing Packages for Bulk Butter . . 5 

Consumers' Packages 8 

Transportation Facilities for Butter . . 13 

Wholesale Trade Organizations ... 16 



Page 

Market Grades of Creamery Batter . . 17 

Market Inspection of Creamery Butter . 20 

Butter Quotations 21 

Market Distribution of Creamery Butter 26 

Cold-storage Methods and Facilities . . 28 

Brands and Trade-Marks for Butter . . 31 

Advertising and Salesmanship .... 35 

Summary 36 




WASHINGTON 

GOVERNMENT PRINTING OFFICE 

1917 



^-0 ? 



D. of D. 

FEB 12 1917 



UNITED STATES DEPARTMENT OF AGRICULTURE 




% BULLETIN No. 456 



Contribution from Office of Markets and Rural Organization r^l 
^S^'^^^ CHARLES J. BRAND, Chief ^^!^"^^ 




Washington, D. C. T February 5, 1917 



MARKETING CREAMERY BUTTER. 

By Roy C. Potts, Specialist in Marketing Dairy Products, and H. F. Meyeb, 
Assistant in Marketing Dairy Products. 



CONTENTS. 



Introduction 1 

Uniform quality of butter an important 

market requirement 2 

Packages for bulk butter 3 

Preparing packages for bulk butter 5 

Consumers' packages 8 



Wholesale trade organizations 16 



Market grades of creamery butter 17 

Market inspection of creamery butter 20 

Butter quotations 21 

Market distribution of creamery butter 26 

Cold-storage methods and facilities 28 

Brands and trade-marks for butter 31 



Transportation facilities for butter 13 Advertising and salesmanship 35 



Summary 36 



INTRODUCTION. 

The purpose of this bulletin is to present in logical sequence general 
facts and information regarding the packing, shipping, and market- 
ing of creamery butter, which may be of interest to producers, dis- 
tributors, and consumers of dairy products, as well as students and 
dairy officials. It is not intended that this bulletin should contain 
only new facts, but rather to make available in one publication a 
great deal of information regarding the marketing of creamery but- 
ter, which is of general interest. It should not be implied from the 
statement of any existing method or condition that the department 
thereby approves of such method or condition. A discussion of the 
more complex economic phases of butter marketing has been omitted 
purposely with the intention of treating them in future publications 
after further investigation and study. 

A general survey and investigation was conducted in over 50 
cities, in which the market requirements as well as methods and 
facilities for distribution were carefully studied. In each market 
visited numerous samples of butter were inspected and interviews 
were obtained with wholesale butter receivers, jobbers, brokers, man- 



NoTE. — This bulletin should be of special interest to manufacturers and distributors of 
creamery butter in the United States and of general interest to dairy farmers who sell 
cream to creameries. 

61166°— Bull. 456 — 17 1 



►v^ / Xj to Y 

2 BULLETIN 456, U. S. DEPARTMENT OF AGRICULTURE. 

agers of chain stores, retailers, restaurant and hotel proprietors, offi- 
cials of produce exchanges and butter boards, the official "butter in- 
spectors of the exchanges, managers of cold-storage warehouses, and 
officials of transportation companies. 

UNIFORM QUALITY OF BUTTER AN IMPORTANT MARKET 
REQUIREMENT. 

A frequent complaint made by the dealers and distributors in the 
markets is a lack of uniformity of the butter produced by many 
creameries, and an increasing quantity at certain seasons of inferior 
butter which is known as "undergrades." An inspection of this but- 
ter indicated that the inferior quality was often due to the use of 
cream of poor quality and to some extent to faulty manufacturing 
methods. 

The requirements of various markets differ widely in some particu- 
lars, and butter of certain characteristics which is acceptable on some 
markets may meet serious objection on others. An illustration of this 
variation is found in New York and Philadelphia where certain con- 
suming classes require butter of light color and salt, a firm waxy 
body, and a quick, fresh, sweet, clean flavor, while in Baltimore, 
Washington, and the markets of the South, the consumers generally 
prefer a deep yellow color, medium to heavy salt, and a reasonably 
fresh, clean flavor. Some markets require a high-flavored, firm- 
bodied, well-made piece of butter. Creamery men would do well to 
pay more attention to the importance of producing butter of the qual- 
ity demanded by critical markets if tliey wish to obtain the highest 
market prices for their products. They should also know the require- 
ments of the various markets and the channels of trade through 
which each grade of butter reaches that trade which demands it. 

In the larger markets there are buyers for every grade of butter. 
The large retail chain store and chain restaurant systems in many 
cities often are confronted with the problem of obtaining large sup- 
plies of butter of uniform quality for their trade. They usually 
have been unable to buy directly from local country creameries or 
to obtain their supplies from the smaller jobbers and have been 
obliged, therefore, to buy from the larger wholesale receivers or cen- 
tralizing creameries which may have large quantities of butter of a 
'miform quality. The retail chain store system is becoming an im- 
portant factor in retail butter distribution. In some of the larger 
cities 40 per cent or more of the butter is retailed by chain stores. In 
many of the larger cities very satisfactory sales might be made to these 
stores by country creameries, if they produced butter of uniform 
quality and concentrated their product either at points within the 
areas of production or on the market where the chain store buyers 
could obtain such grades and quantities as they require. The employ- 



MARKETING CREAMERY BUTTER. 6 

ment of an inspector-instructor by various groups of country cream- 
eries in order to standardize the quality of their product would seem 
to be a move in the right direction and could be followed by stand- 
ardization in methods of marketing and by the inspection of the 
butter and by branding it according to official grades. Greater uni- 
formity in quality of butter is of primary importance to successful 
marketing, and creamery butter makers should give this phase of 
the subject most careful consideration. 

COMMON FAULTS IN BUTTER. 

The more common faults observed in the markets in the quality 
of butter are : Soft, leaky, open body ; too much or not enough salt ; 
too high or too light color; metallic flavors; high acid, unclean, and 
old cream flavors; streaks and mottles; mold on butter, also moldy 
and dirty packages. Butter possessing such faults, although not 
always classed as " undergrades," is often discriminated against by 
the critical buyer. During those seasons when the market receipts 
are heavy and the market is weak such butter can be moved only at 
low prices, and often sells at 6 to 8 cents below the better grades. 

PACKAGES FOR BULK BUTTER. 

The two styles of packages used for bulk butter are the " tub " 
and the " cube." In the Middle West the creameries use the G3- 
pound ash tub very generally, while in the New England States a 
preference is shown for butter put up in spruce tubs, of 10, 20, 30, 50, 
and 60 pounds capacity. ^Mien the local production in New Eng- 
land is insufficient to supply the demand, spruce tubs often are 
shipped to creameries in Michigan, Wisconsin, Iowa, Minnesota, Ne- 
braska, and other western dairy States, as a premium of approxi- 
mately half a cent per pound is usually paid by the New England 
buyers for butter packed in these tubs. 

The use of the '"cube" is confined almost wdiolly to the creameries 
located in the Pacific Coast States. (See fig. 1.) This container 
for bulk butter is made of fir and spruce. The shooks used for 
making the cubes are usually surfaced only on one side, which is 
placed toward the butter. The outside of the cube is therefore very 
rough and does not present an attractive appearance. Foreign mar- 
kets to which considerable butter has been shipped from the Pacific 
coast have commented upon the rough surface of the cube and upon 
the lack of uniformity in size and net weight of the packages. The 
cube is a crude package in contrast to the containers used in New 
Zealand, which are neat, attractive, rectangular boxes, holding ex- 
actly 56 pounds, and are branded with the name of the creamery, 
export brand, and net weight on each end. 



4 BULLETIlSr 456, U. S. DEPARTMENT OF AGRICULTURE. 

There has been considerable variation in the size of the eubes used, 
some holding 63 pounds, some 68, and others approximately 80 
pounds. As a step toward standardizino- the size of the cube, the 
San Francisco Wholesale Dairy Produce Exchange recently ruled 
that butter offered on the exchange as " extras " should be packed 
in cubes Avith sides, tops, and bottoms one-half inch in thickness 




Fig. 1. — The cube is used on the Pacific coast for solid paclied bulk butter. Its inside 
dimensions are 12J inches by 12J inches by 13J inches. Its net weight is approxi- 
mately 68 pounds. 

and ends seven-eighths of an inch in thickness, lumber to be sur- 
faced on both sides, corners to be rounded, inside measurement 
12^- by 12^ by 13^ inches, and net weight to be marked on each end. 
The net Aveight of such a cube would be approximately 68 pounds. 
Cubes of a uniform size, which are neat and attractive in appearance, 
would be much more satisfactory and highly desirable both for local 
and foreign markets. 



MARKETING CREAMERY BUTTER. 5 

PREPARING PACKAGES FOR BULK BUTTER. 

Before packing butter into tubs or cubes they should be scrubbed 
thoroughly with a stiff bristle brush and strong hot alkali water 
until the wood is bright and clean. (See fig. 2.) Then it is well to 
soak them in a tank of strong brine, as it tends to hold in check the 
development of mold. The soaking of the tub or cube also increases 
its moisture content and tends to reduce the shrinkage of the butter. 
The package should be paraffined before the parchment paper liner 
is applied, especially if the butter is to be placed in cold storage 
for a number of months. The liners should be soaked in a strong 




Fig. 2. — White ash butter tubs which hold approximately G3 pounds of butter. The tub 
on the left presents an unattractive appearance, due to its moldy condition. Butter in 
clean tubs is sold more readily and at higher prices in the market. 

solution of brine and carefully placed in the tub or cube so that the 
butter is protected from direct contact with wood and presents a neat 
and attractive appearance when the package is opened for inspection. 

PACKING BULK BUTTER. 



In packing butter in tubs or cubes the parchment liners should 
be retained in the proper place and the butter packed solidly so that 
it is free from holes. (See fig. 3.) In some of the larger eastern 
markets a great deal of butter is retailed direct from the tub, and 
to some extent this is done with cubes on the Pacific coast markets. 
When tub butter is retailed in this way, the tub and liner are re- 
moved, and it is cut with a wire into three horizontal layers. De- 



6 BULLETIN 456, U. S. DEPARTMENT OF AGRICULTURE. 

pressions and holes in the butter caused by wrinkled liners and care- 
less packing seriously injure the appearance of the butter, which 
should be neat and attractive to please the consumer. 

BRANDING TUBS AND CUBES. 

Butter shipped interstate in package form is required by Federal 
law to be branded with its net weight. Some States and cities require 




Pig. 3. — Tub butter which was poorly packed. The holes or pockets expose more surface, 
thus permitting greater shrinkage and development of mold. 

the net weight to be branded upon consumers' packages. The brand- 
ing of the tub and cube with the gross weight, net weight, and tare 
greatly facilitates the handling of bulk butter on the market. In the 
market inspection of a shipment of butter consisting of different 
churnings it would be convenient to have the number of the churning 
placed on each tub. The name or stencil number of the creamery and 



MARKETING CEEAMERY BUTTER. 7 

the receiver's name and address should be stamped on the top of the 
tub or cube. The suggestions obtained from the practice in some for- 
eign countries of having the name, address, and license number of 
the factory printed on each end of the cube or container, and of burn- 
ing into the wood the net weight, are worthy of consideration. 



MARKET METHODS OF WEIGHING TUB BUTTER. 

Various methods of determining the net weight of butter in tubs 
are employed. (See fig. 4.) Some receivers accept the weights 
marked on the tubs by the creamery; others weigh each tub sepa- 
rately and mark upon the outside of the tub the gross weight in 




Fig. 4. — Each shipment of I)utter is weighed and inspected by the wholesale receiver upon 
its receipt in his cooler or butter cellar. 

full pounds. A numl)er of the tubs are then stripped and the aver- 
age net weight of actual butter in full pounds is obtained. The dif- 
ference is taken as representing the tare of the tub. The rules of the 
Chicago Butter and Egg Board provide that a sufficient number of 
tubs in each lot (not less than 10 per cent) shall be weighed. 

On the New York market (fig. 4), in determining the tare for the 
tub, the dealers usually make " test weights " as follows : 

Weigh 3 tubs out of 12 or under. 
Weigh 5 tubs out of 12 to 40. 
Weigh 10 tubs out of 40 to 100. 
Weigh 1.5 tubs out of 100 to 150. 
Weigh 20 to 25 tubs out of a carload. 



8 



BULLETIN 456, U. S. DEPAKTMENT OF AGRICULTURE. 



It is customary among the trade in weighing buttgi* to require 
" up-weights," that is, the beam of the scale must bahince against the 
upper rest, and when it does not the next lower pound is taken, frac- 
tional weights usually not being counted. 

Since the net w^eight amendment to the pure food law became ef- 
fective, distributors state that it is often unnecessary to weigh the 
butter, as the creamery's weights are accepted. It is very important, 
therefore, that creameries should weigh their butter correcth'^ in 
order to obtain full weights. An alloAvance of one-half to three- 
fourths pound usually is made by creameries for shrinkage. Since the 




Fig. 5. — In some markets a great deal of butter is retailed from tubs. 

value of butter is higher than it was jQixvs ago when the present mar- 
ket methods of weighing Avere first adopted, it is even more impor- 
tant now that accurate methods of weighing be employed. 



CONSUMERS' PACKAGES. 

The trend at present in the market distributicm of creamery butter 
is toward individual consumers' packages. The standard package 
most commonly used on eastern markets is the 1-poimd print Avhich 
measures 21 by 2^ by 4f inches. In New York City, Boston, Buffalo, 
Cleveland, Charleston, and New Orleans the practice of retailing 
butter from tubs is still quite prevalent. (See fig. 5.) A large por- 
tion of the butter retailed is printed, wrapped, and placed in cartons 



MARKETING CREAMERY BUTTER. 



9 



from tub butter. (See fig. 6.) Since tlte tub-shaped package is not 
the most desirable in some respects for cutting prints, a great deal 
of the butter distributed by the larger creameries is cut into prints 
at the creamery. Some creameries use the cube in preference to the 
tub for storage purposes, as it is better adapted to the cutting of 
prints. 

The standard cube (12^ by 12| by 13^ inches) used on the Pacific 
coast weighs about 68 pounds net and cuts out 64: full pounds of 
prints, thus leaving about 1 pounds of scrap to be repacked. A num- 
ber of creameries in Ohio and Indiana are using cubes for their 




Fig. G. — Wholesale distributors of butter in the larger markets use machines which cut 
and wrap the prints. The cartons are usually put on by hand. 

shipments to Cincinnati, Louisville. Columbus, and other markets, 
as the dealers find them to be more economical in cutting prints 
from the standpoint of investment in printing equipment, labor, 
and shrinkage. 

SHRINKAGE IN PRINTING TUB BUTTER. 



The shrinkage in cutting prints from tub butter due to the loss of 

free moisture and a slight overweight allowed on each print is a 

larger item than ordinarily is considered. It has been found to vary 

from one-half to H pounds per tub. The various factors which 

61166°— Bull. 456— 17 2 



10 BULLETIN 456, U. S. DEPARTMENT OF AGRICULTURE. 

influence the loss of moisture are the temperature or firmness of the 
butter when printed; the firm, loose, or leaky body of thfe butter; 
the condition in which the moisture is incorporated; and the equip- 
ment and method employed in cutting the prints. In order to avoid 
large shrinkages or losses in printing, some receivers sort out those 
tubs which have a firm body and in which the moisture is well incor- 
porated. With a loss of 1^ pounds per tub in printing loose, leaky- 
bodied butter, it is evident that receivers cannot afford to pay as 
much for such butter as for butter in which the loss in printing 
is less. 




Fin. 7. — Three styles of 1-pound butter cartons are used. The right one Is used by 
creameries in the Middle West, the center one is used in Vermont, and the one on the 
left on the Pacific coast. 

THE USE OF CARTONS AND RETAILERS' BRANDS. 

The use of cartons for print butter is increasing upon every mar- 
ket. Their advantages are that they make a more sanitary package 
which is more convenient for the retailer to handle, the quality of 
the butter is preserved longer, and, if branded with the name of 
the manufacturer or distributor, they furnish an advertising feature. 
(See fig. 7.) The larger chain stores handle print butter under 
their exclusive brands which are put up for them either at the cream- 
ery, by the jobber from whom they buy, or in their own butter print- 
ing department. Many retailers and wholesale distributors find it 
convenient and economical to furnish parchment wrappers and car- 
tons bearing their private brands to creameries which for a small 
extra charge put their butter up for them. 



MARKETING CREAMEEY BUTTER. 



11 



LESS-THAN-POUND PACKAGES. 

Two methods are used in marketing the less-than-pound packages. 
Some creameries use cartons which carry less than a pound. Others 
use a special frame on their printer and either halve or quarter 
the regular pound print (2^ by 2^ by 4f inches). Figure 8 shows 
this method of marketing one-fourth, one-half, and 1-pound prints, 
by using the 1-pound carton. The individual pieces of butter are 
wrapped separately with parchment paper, consolidated into a pound 
package, and the whole wrapped with wax paper. Wlien this 
method of putting up butter is employed an extra wholesale price 
of one-half to 1 cent a pound usually is obtained. 

In some cities a large portion of the butter is sold in these styles 
of packages. This custom is prevalent in the South and is increasing 




Fig. 8. — The standard carton used in the Middle West is 2J by 2J by 41 inches. It may 
be used for full-pound prints, four quarter-pounds, or two half-pounds. 

in the North, particularly among consumers who demand small 
amounts, or prefer their butter in this style on account of its greater 
convenience in serving. 

ORNAMENTAL PRINTS. 



The custom is still quite prevalent in some of the eastern markets 
to imprint on each roll, crock, or print of butter an ornamental 
design or emblem. Illustrations of some of these designs are shown 
in figure 9. This is accomplished by an attachment to the cutter, 
which produces the desired impression as the butter passes beneath it. 
At the smaller creameries hand molds are used. The general use 



12 



BULLETIN 456, U. S. DEPARTMENT OF AGRICULTURE. 



of these ornamental designs is decreasing and undoiibte^dly will 
become obsolete as individual consumers' prints in standard cartons 
come into more general use. 




Pig. 9. — Ornamental prints are prevalent in New England. They are expensive to make 
and very inconvenient to pack and ship. 




Fig. 10. — The unstandardized packages of New England require the use of various styles 
hy a creamery. A standard package would he more convenient and satisfactory. 

OTHER STYLES OF CONSUMERS' PACKAGES. 

Throughout the New England States various styles of consumers' 
packages are in use. (See fig. 10.) The more common are known 
as the flat pound, flat half-pound, half-i)oiind individual, 1-pound 
hotel bar, half-pound bar, western 1-pound prints, 2-pound brick, 



MARKETING CREAMEEY BUTTER. 



13 



5-poimd rectangular box, 5-poimd round box (^Yooden or fiber), 
and 10-pound tub. (See fig. 11.) This lack of uniformity means 
additional labor and expense for creameries when preparing butter 
for market. An effort is being made by the Vermont creameries to 
standardize the consumers' packages used in that State. 

The customary consumers' packages on the Pacific coast are the 
1 and 2-pound flat prints. The United States Navy in its contract 
for butter requires that a part of its supply be put up by the cream- 
eries in 5-pound sealed tins. (Fig. 12.) Butter for export to the 
Tropics usually is packed in similar tins, with the weights based 
on the metric system, and ranging from approximately one-half to 
25-pound packages. 




Fig. 11. — Tub butter is often repacked into smaller containers. The 5-pound wooden 
box is used as a consumer's package to some extent. The process is expensive as com- 
pared with cartoned prints. 

SHIPPING CONTAINERS FOR BUTTER. 

Fiber board, corrugated board, and wooden boxes are used as ship- 
ping containers for print butter. For city distribution, the fiber 
board boxes are used quite generally. When rehandling in transit 
is necessary or greater protection during the summer season is 
required, the wooden boxes often are preferred. 



TRANSPORTATION FACILITIES FOR BUTTER. 

In some sections the gi-eat bulk of the butter is shipped to the 
market by refrigerator freight. Throughout the dairy sections of the 
Middle West a regidar scheduled refrigerator dairy freight service is 



14 



BULLETIN 456, U. S. DEPARTMENT OF AGRICULTURE. 



operated by the railroads or fast freight refrigerator conipanies. to 
move the shipments of butter from the creameries to eastern markets. 
The butter is collected from the creameries along the line in iced cars 
by " pick-up " service, and at junction or division points entire car- 
loads are made up. The larger creameries which produce a carload 
or more of butter a week usually ship in carload lots directly from 
their plants. In distributing butter out of terminal markets such as 
Chicago, the various railroads extending into the South and East 
operate regular scheduled refrigerated package cars to certain cities 
where bulk cars are broken for distribution. In the more sparsely 
dcA'eloped dairy sections and particularly with the smaller creameries. 




Fig. 12.- — The butter exported to tropical countries is usually sealed in tins. The outside 
container is lined with corrugated fiber board and bound with strips of tin. 

which market in local and neighboring cities, express service is 
commonly used. 

Often exjDress service may be used to advantage in reaching a 
junction point on a railroad through which a regular scheduled re- 
frigerator car operates and from which refrigerator service by 
freight may be obtained to the market which the shipper desires to 
reach. 

Arrangements prior to shipping should be made with the re- 
frigerator car company to advance the local express charges, which 
they will later collect with the freight charges at destination. 



MARKETING CREAMERY BUTTER. 15 

The shipping tag on each package should carry the necessary rout- 
ing instructions so that those handling the shipment may be fully in- 
formed of the service desired. 

The advantages of this arrangement are twofold : First, movement 
of the product under refrigeration over a greater part of the route is 
obtained; second, the transportation costs are often less for the com- 
bined express and freight services than the regular through express 
charges. 

REFRIGERATION SERVICE FOR BUTTER ON THE GREAT LAKES. 

Inland waterway service has not been generally used for butter 
transportation. During the past two years, with three boats on the 
Great Lakes equipped with refrigerator compartments, a consider- 
able quantity of butter was shipped by boat from Duluth, Minn., 
to Buffalo, N. Y., where much of it was reshipped by rail to eastern 
markets. This service has been generally satisfactory to those who 
have used it, and a saving in freight costs of approximately one- 
quarter cent per pound has been obtained. 

OCEAN AND COASTWISE TRANSPORTATION. 

Facilities for ocean and coastwise transportation of butter under 
refrigeration have been established to some extent. A large portion 
of the butter in coastwise trade is carried without refrigeration. This 
is true on both the Pacific and Atlantic coasts where the time between 
points is 48 hours or less. Some of the steamers have small refriger- 
ator rooms which are used for butter as well as for milk, cheese, 
and other perishable products. With the development of trade 
through the Panama Canal, steamers sailing from the ports of the 
Pacific coast probably will be equipped with refrigeration so as to 
handle butter, as there is an increasing surplus on the Pacific coast 
for which markets may be obtained in the eastern and southeastern 
parts of the United States or in export trade. 

COOPERATIVE CAR-LOT SHIPPING. 

In various sections of the United States country creameries have 
cooperated in obtaining a special scheduled " pick-up " refrigerator- 
car service, and in concentrating local shipments into carload lots. 
By this means freight charges have been less and the butter has 
reached the market in better condition. When a number of cream- 
eries are located on the same railroad or in close proximity to each 
other, cooperative car-lot marketing may be a great advantage. 



16 



BULLETIN 456, U. S. DEPARTMENT OF AGRICULTURE. 



WHOLESALE TRADE ORGANIZATIONS. 

The wholesale receivers of butter, eggs, and cheese in the larger 
markets have formed trade organizations. Through such organiza- 
tions good fellowship is promoted and a meeting place or exchange 
room is maintained. At the meetings, which are usually held daily 
and are known as the " call " or " 'change," sales are conducted. 
These sales are in the form of an auction and each member has the 
privilege of posting his offerings and bids or listing them with the 
oiRcial in charge. In order to facilitate trading between the members 



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Fig. 13. — The wholesale trade organizations in the larger markets maintain bulletin 
boards on which market Information is posted for the information of the trade. 

rules and regulations have been adoj^ted which provide (1) for the 
establishment of classes and grades of butter, (2) for an inspection 
service to apply these grades, and (3) for the adjustment of disputes 
in trading between members. Through the officers of the organiza- 
tion information is obtained for the members regarding the move- 
ment, prices, demand, and supply of butter in other markets and 
receipts at the local market. (See fig. 13.) They also obtain the 
benefiits of cooperative action in matters which are of mutual intei'est. 



MARKETING CREAMERY BUTTER. 17 

such as State and city legislation, transportation and. terminal 
facilities, and improvement of produce markets and marketing 
facilities. 

MARKET GRADES OF CREAMERY BUTTER. 

Market grades of creamery butter are necessary in order to facili- 
tate trading and to establish market quotations for the various quali- 
ties. The purpose of grades is to establish a measure or standard for 
the qualities. A score card Avhich recognizes the relative importance 
of the following characteristics is employed for the purpose of grad- 
ing butter: Flavor (45), body (25), color (15), salt (10), and pack- 
age (5). This gives a total of 100 points and the score the butter 
receives usually determines its grade. 

The market grades of butter established by various wholesale 
produce organizations conform quite closel}' to a uniform standard. 
The interpretation or application of the grades by the butter in- 
spectors may vary on the different markets and in educational and 
commercial scorings. These differences are due to a different require- 
ment of quality which the inspector may use or a market may demand. 
Therefore butter scored 93 points by one inspector may be scored 
only 90 or. 91 points by another, and an inspection certificate for an 
" extra " issued in one market may not be accepted as an " extra " in 
another. The requirements of each grade of creamery butter as 
established for the New York, Chicago, and San Francisco markets 
established for the New York, Chicago, and San Francisco markets by 
the wholesale trade organizations at each market are given herewith. 

GRADES OF BUTTER ESTABLISHED BY THE NEW YORK MERCANTILE EXCHANGE 
FOR THE NEW YORK MARKET. 

Extras. — Shall be a standard grade of average fancy quality in the season 
when offered under the various classifications. Ninety per cent shall conform to 
the following standard ; the balance shall not grade below firsts : 

Flavor. — Must be sweet, fresh, and clean for the season when offered. 

Body. — Must be firm and uniform. 

Color. — Not higher than natural grass, nor lighter than light straw, but 
should not be streaked or mottled. 

Salt. — Medium salted. 

Package. — Sound, good, uniform, and clean. 
Firsts. — Shall be a grade nest below extras and must be good butter for the 
season when made and offered, under the various classifications. Ninety per cent 
shall conform to the following standard ; the balance shall not grade below 
seconds : 

Flavor. — Must be reasonably sweet, reasonably clean, and fresh. 

Body. — Must be firm and fairly uniform. 

Color. — Reasonably uniform, neither very high nor very light. 

Salt. — May be reasonably high, light, or medium. 

Package. — Sound, good, uniform, and clean. 

61166°— Bull. 456—17 ^3 



18 BULLETIN 456, U, S. DEPARTMENT OF AGRICULTURE. 

Seconds. — Shall be a grade next below firsts. 

Flavor. — Must be reasonably good. ^ 

Body. — Must be solid boriug. 
Color. — Fairly uniform, but may be mottled. 
Salt. — May be high, medium, or light. 
I'aelaKjc. — Good and uniform. 
Thirds. — Shall be a grade below seconds and may consist of promiscuous lots. 
Flavor. — May be off-flavored and strong on tops and sides. 
Body. — Not required to draw a full trier. 
Color. — May be irregular or mottled. 
Salt. — High, light, or irregular. 

Package. — Any kind of package mentionetl at time of sale. 
Extra creamery may score either 91, 92, or 93 points at the discretion of the 
butter committee, who shall determine the required score from time to time in 
such manner that it shall represent an average fancy .quality in the season 
when offered. But butter scoring more than required for extras shall be deliver- 
able on a contract for extras, and may be branded as such at the request of 
seller or buyer. Any change in the standard score required for extras shall, 
after authorization by the butter committee, be announced by the caller at the 
opening of the next regular call and posted iipon the bulletin board of the 
exchange and be effective 24 hours later. 

The minimum score of Firsts shall at all times be 4 i)oints below the score 
required for Extras. 

The minimum score of Seconds shall be .5 points below the minimum score 
required for Firsts. 

The minimum score of Thirds shall be 7 points Itelow the minimum score 
I'equired for Seconds. 

GRADES OF BUTTER ESTABUSHED BY THE NEW YORK BUTTER AND EGG EXCHANGE 
(INC.) FOR THE NEW YORK MARKET. 

This Exchange was organized in the spring of 1916 and adopted the same 
grades for Extias, Firsts, Seconds, and Thirds as the New York Mercantile 
Exchange. In addition a grade known as Specials was adopted with the 
following requirements : 

Specials shall be the highest standard grade of fancy quality in the season 
when offered of creamery butter. Ninety-five per cent shall conform to the 
following standard and the balance shall not grade below an Extra. 

Flavor. — Must be the sweetest, freshest, and cleanest for the season when 
offered and nmst have a pronounced aroma and quick flavor. 

Body. — Must be firm and uniform. 
. Color. — Not higher than natur;U grass nor lighter than light straw and can 
not be wavy, streaked, or mottled. 

ASfo//.^Medium salted. 

Packaf/e. — Must be clean, uniform, and in good condition and the Itutter must 
be solidly packed. 

GRADES OF CREAMERY BUTTER ESTABLISHED BY THE CHICAGO BUTTER AND EGG 
BOARD FOR THE CHICAGO MARKET. 

Extras. — Shall consist of a grade of butter scoring 93 points or higher. 

Flavor. — INIust be fine, sweet, fresh, and clean, and good, sweet, and clean 
if held. 

Body. — Must be firm and solid, with good grain or texture, free from 
salviness. 



MARKETING CREAMERY BUTTER. 19 

Color. — Must be nniforra, neither too light nor too high. 

Salt. — Well dissolved, thoroughly worked in, not too high nor too light. 

Package. — Good and sound as required in classification. 
Extra firsts. — Shall be a grade of butter scoring 91 points or higher. 

Flavor. — Must be fresh, clean, and sweet, and fairly clean if held ; all 
other requirements same as extras. 
Firsts. — Shall be a grade of butter scoring 87 points or higher. 

Flavor. — May be faulty but must be fairly good. 

Body. — Fairly good grain and texture. 

Color. — Fairly luiifonu. 

Salt. — Not unreasonably high or light. 

Package. — Good and sound as required in classification. 
Seconds. — Shall be a grade of butter scoring 80 points or higher. 

Flavor. — May be unclean. 

Body. — Must be fairly smooth boring. 

Color. — May be irregular or mottled. 

Salt. — May be irregular, high, light, or uneven. 

Package. — Same as required in firsts. 
Thirds. — Shall be a grade of butter scoring 75 points or higher. 

Flavor. — May be off, old, or strong tops and sides. 

Body. — May not be smooth boring. 

Color. — Mixed or streaked. 

Salt. — Irregular. 

Package. — Miscellaneous. 
Packages to be used. — Creameiy tubs, hardwood, about 60 pounds (for 
extras shall be standard white ash with wood hoops). All other style of 
package must be specified. 

GRADES OF CREAMERY BUTTER ESTABLISHED BY THE SAN FRANCISCO WHOLE- 
SALE DAIRY PRODUCE EXCHANGE FOR THE SAN FRANCISCO MARKET. 

(The grade is not determined by the score alone.) 

Extras. — Extras shall consist of the highest grade of butter. 

Score. — Score shall average 93 points or higher for creamery or dairy ; 
90 per cent shall be up to the following standard, the balance shall not 
grade below " firsts." 

Flavor. — Flavor must be quick, fine, fresh, and clean, if of fresh make, 
and good, sweet, and clean if storage stock. 

Body. — The body must be firm and solid with perfect grain or texture, 
free from salviness. 

Color. — Color must he luiiform, neither too light nor too high ; good 
straw-color standard. 

Salt. — Salt must be thoroughly dissolved ; not too high or too light 
salted. 

Package. — Packages must be good, uniform, sound, and clean, and free 
from labels, brands, or stencil marks. 

All fresh California butter, either squares or solid packed, grading 
" extras," to grade as such and be a good delivery when sold under the 
spot call, and in the absence of any agreement to the contrary, shall be 
packed, when in squares, in new, white wood 60-pound cases, parchment 
lined ; and when solid packed, shall be packed in cubes, whose inside 
dimensions shall be 12^ by 12^ by 13* inches, parchment lined, and the 
cubes shall weigh not less than 63 pounds nor more than 68 pounds net 
weight. 



20 BULLETIN 456, U. S. DEPARTMENT OF AGRICULTUEE. 

Prime firsts. — Prime firsts shall be a grade just below extras scoring 90 
points or higher for creamery or dairy; 85 per cent shall be up to ftie follow- 
ing standard, the balance shall not grade below " firsts.'* 

Flavor. — Flavor must be good, sweet, clean, and fresh for all current 

make, and good, sweet, and clean for held. All other requirements shall 

be the same as for " extras." 

Firsts. — Firsts shall be a grade just below prime firsts, scoring 87 points or 

higher for creamery or dairy; 85 per cent shall be up to tlie following standard, 

the balance shall not grade below " seconds." 

Flavor. — Flavor must be good, sweet, clean, and fresh for all current make, 
and good, sweet, and clean for held. All other retiuirements shall be the 
same as for "extras." 
Seconds. — Seconds shall consist of a grade just beiow firsts. Score must be 
80 points or higher for either creamery or dairy. 

Flavor. — Flavor must be fairly good and sweet. 

Body. — Body must be solid boring. If ladles, must be 90 per cent solid 
boring. 

Color. — Color must be fairly good, although it may be irregular. 
Salt. — Salt may be irregular, high, or light salted. 
Package. — Packages must be good and sound, but may lie second hand. 
Thirds. — Thirds sliall consist of a grade just below seconds. Score must 
average 70 points or higher. 

Flavor. — Flavor must be reasonaI)ly good, may be strong on tops and 
sides. 

Body. — Body must be fair l)ornig if creamery or daii\v and at least 50 
per cent bore and full trier if ladies. 

Color. — Color defective, mixed, or streaky. 

Salt.— Halt irregular. 

Package. — Package fairly uniform. 

MARKET INSPECTION OF CREAMERY BUTTER. 

In applying the grades established by an exchange, an inspector 
is employed or some person is appointed to make the inspections. In 
making an inspection a portion of the tubs in the lot is examined. 
The rules of the New York Mercantile Exchange provide that sam- 
ples shall be drawn from each lot of "one mark and invoice," meaning 
one shipment from a single creamery, as foUoAvs: 

Inspect 5 tubs from lots of less than 25 tubs. 
Inspect 8 tubs from lots of 25 to 50 tubs. 
Inspect 15 tubs from lots of 50 to 100 tubs. 
Inspect 20 tubs from lots of 100 or over. 

The rules of the Chicago Butter and Egg Board provide for the 
sampling and -inspection of 5 tubs from lots of less than 50 tubs, and 
10 tubs from lots of 50 to 100 tubs. Whenever the butter is quite 
irregular in quality the inspector may increa.se the number of samples 
until he is satisfied Avith his score for the lot. As the grade of a lot 
of butter usually is determined by the inspection of less than 20 per 
cent of the tubs, it is possible that the tubs inspected may not truly 
represent the average grade of the entire lot. The particular tubs in- 



MARKETING CREAMERY BUTTER. 21 

spected may be those of a cliiirning of a lower or higher grade than 
the other tubs. It would be possible to avoid this if creameries would 
give each churning a consecutive number, and number the tubs of 
each churning accordingly. (See par. 6, p. 33 of Iowa State brand 
requirements.) In this way one tub from each churning could be 
inspected. This practice would also be a convenience to receivers and 
buyers in selecting tubs of the same (juality or of a single churning. 

DUTIES OF OFFICIAL MARKET INSPECTORS. 

INIost of the butter sold on the " call '' is bought subject to official 
inspection, and in such sqles the certificate of inspection is delivered 
to the buyer with the butter. When requested to do so the inspector 
also may certify to the grade of butter received by members of the 
exchange from creameries or sold privately by them. In some mar- 
kets butter purchased for export, for the Govornnient, or for private, 
municipal, or State institutions must bear the official stamp of the 
inspector. In trading between members of the exchanges, a certifi- 
cate is issued but the packages are not stamped unless it is requested. 

In some markets the inspector is regularly employed by the ex- 
change, while in others one of the members of the exchange may be 
appointed to serve as inspector, since there are but few sales on " call " 
and inspections are rather infrequent. 

Most of the butter is accepted from creameries by the wholesale 
receivers without an official inspection. Even in the market distribu- 
tion of the butter it is largely a matter of bargaining between the 
salesman and the buyer. The receiver or buyer is the judge of the 
quality, and his inspection is spoken of as being " over the trier." If 
the price and quality are satisfactory, official inspection is unneces- 
sary. Official market inspection of shipments from creameries are 
more frequent on a weak market or when the trend of prices is lower 
than on a firm market when prices are advancing. Such a practice 
has been criticized, and it has been proposed that the State creamery 
associations should maintain inspectors on the larger and more im- 
portant markets. It has also been suggested that the Federal Gov- 
ernment might maintain an inspection service on the principal mar- 
kets and at points of concentration. Such a service would require 
the promulgation of Government grades for butter. 

BUTTER QUOTATIONS. 

Butter quotations are usually intended to serve as an index of the 
wholesale market value of certain grades of butter. Formerly the 
wholesale trade organizations exerted a considerable influence upon 
butter market quotations through quotation committees. In most 
markets at present the quotations are determined by market-reporting 



22 BULLETIN 4o6, U. S. DEPARTMEXT OF AGRICULTURE. 

agencies. The methods employed in arriving at the quotations vary 
someAvhat in the different markets. It is the usual custom for a mar- 
ket reporter who is acquainted with the wholesale receivers and job- 
bers on the market to interview these dealers and obtain current in- 
formation from them regarding the condition of the market, Ijuying 
and selling prices of the various grades of butter, and the general 
movement of receipts. He also attends the meeting of the exchanges 
where he interviews members of the wholesale trade organization and 
notes the offers and bids on the " call.' "With this general informa- 
tion he is able "to make a report of the market prices of butter which 
when published becomes the market quotation. 

INFLUENCE OF EXCHANGE TRADING ON QUOTATIONS. 

In a few markets the quotations for butter are established in 
accordance with the method just described, and the exchange trading 
has a considerable influence on the quotations. The sales on the 
" call " represent a very small percentage of the total receipts. 
Therefore it is apparent that the market reporter should be able to 
detect irregularities in the offers and bids in order to establish a 
quotation which reflects the actual market value. When market 
values are continually underquoted, the paying of premiums over 
quotations usually results. Exchange trading, therefore, which 
reflects the true market value of butter, must be free from manipula- 
tions. 

That the New York Mercantile Exchange, the Chicago Butter and 
Egg Board, the Elgin Board of Trade, and the San Francisco "Whole- 
sale Dairy Produce Exchange have a widespread influence on the 
price and movement of creamery butter is genera 11}^ recognized. The 
New York Mercantile Exchange meets at 10 each morning, eastern 
time ; the Chicago Butter and Egg Board it 9.30, central time : and 
the Elgin Board about 12 m. on each Saturday. 

Various methods of effecting sales on " call " are employed. 
Usually the offerings are numbered, and the bidder stipulates the 
number of the lot for which he is bidding. A sale is effected Avhen- 
ever a bid and offer of the same grade coincide. During the " call " 
the offers, bids, and sales are usually posttd on the blackboard or 
•' call " board. 

THE BASIS FOR MARKET QUOTATIONS. 

The true basis for a market (flotation is the price at which the 
majority of the sales of a definite grade are made. By majority of 
the sales is implied the sales made inuler the free influence of the law 
of supply and demand. The greatest difficulty in establishing 
accurate market c{uotations at the present tme is to obtain the price 



MARKETING CREAMERY BUTTER. 



23 



at which actual sales of butter of a definite quality are made. Pres- 
ent quotations are largely estimates and approximations of market 
values. 

The following reports of the butter markets at Chicago and New 
York were taken from the sources given and indicate the information 
which is considered of interest and value to producers and distribu- 
tors of butter. It may be well to note that butter prices were at the 
climax for the season at the time these reports were made, having 
reached 38 cents at New York and 36| cents at Chicago. Butter was 
mostly out of storage and current receipts in ready demand. 
Lighter buying by the retailers, attributed to curtailed consump- 
tion due to the current prices, had resulted in an unsettled feeling 
and slightly lower prices ruled during the following two days. The 
range between the lower and better grades was the narrowest for 
the season. The statements which are here presented in italics 
deserve especial notice. 

New York, Wednesday. ^Iarch 22, Chicago, Thi-ksday, March 23. 1916. 
1916. 



(From the Producers' Price-Current.) 
Butter. 



This 
week. 



Keceipts, Monday, pkgs.. 5,041 

Receipts, Tuesday i 11,241 

Keceipts, Wednesday 9,834 



Last 
week. 



Last 
year. 



(From Daily Trade Bulletin.) 

The receipts at Chicago (not in- 
cluding tlu-ough shipments) for tlie 
days mentioned ^vere as follows : 

Butter. 



5,268 4,305 
12,058 11,366 

8,819 : 8,948 



Total I 26,176 26,745 24.679 

The present supply of fresh cream- 
ery is barely equal to current wants, 
and the market maintains a^ firm posi- 
tion. There is a loss of trade in some 
directions, due to the advanced retail 
Ijrices, but receipts from the usual 
sources of supply are not increasing 
materially as yet. Another carload of 
CaUfomia butter in to-day, but not 
available at the present writing. Fur- 
ther shipments in transit, and this may 
relieve the situation somewhat. Tran- 
sactions on 'Change this morning in- 
cluded seven lots of 25 tubs each, 
creamery extras, at 38^. Open busi- 
ness was very generallj' at that price, 
but the feeling was strong enough 
to give sellers some advantage, and 
it did not always require inspected 
goods to go at that rate. The higher 





This 
week. 


Last 
week. 


Last 
year. 


Mondav 


Tubs. 
9,840 

8,675 
8,387 
4,805 


Tubs. 
8,079 
6,832 
7,908 
4,843 


Tubs. 
9.794 


Tuesdav 


8,927 


Wednesday 


8,366 


Thursday 


5,649 






Total 


31,707 


27,662 


32, 736 







A steady feeling exists and prices 
practically unchanged. Neic York tvas 
reported l<j; lower. 

A fair business is being transacted, 
and as yet the market keeps cleaned 
t(p quite closely, although receivers 
find they are compelled to carry over 
butter occasionally, as the demand is 
limited to buyers supplying their 
immediate wants, and these are 4 not 
for any great quantities. Conditions 
are not just what they ivere a fere 
days ago, when butter was taken up 
on arrivals and the price was tio ob- 
ject. Note buyers hesitate and figure 
on what will do them the best, and 



24 



BULLETIN 456, U. S. DEPAETMENT OF AGRICULTURE. 



scoring lots are still absorbed mostlij 
by regular trade; anytliing free to be 
sold brings 881 @ 39t Fresh firsts 
and seconds have quick sale, the for- 
mer at 36^ @ 37i^ and the latter 
at 34 @ 36, with comparatively 
few lots to be had below 35C. Di- 
salted creamery moving out very satis- 
factorily. Storage creamery con- 
tinues in active demand, and the small 
available stock is fast passing out of 
first hands. Extras are firm at 35* 
and 36^, several sales reported at the 
top figure, and other grades range from 
33 and 35<-. 

Creamery, extras (92 

score, per lb 38 @ 

Creamery (higher scoring 

lots) 38i @ 39 

Creamery, firsts (88 to 91 
score) 36i @ 37i 

Creamery, seconds (83 to 

87 score) 34 @ 36 

Creamery, thirds 32 @ 33 

Creamery, unsalted, fancy. 39 @ 40 

Creamery, unsalted, prime 
to choice 37^ @ 38i 

Creamery, vmsalted, com- 
mon to good 34 @ 37 

Creamery, held, extras 35J @ 36 

Creamery, held, higher 
scoring 

Creamery, held, firsts 34 @ 35 

Creamery, held, seconds 3I2 @ 33^ 

Creamery, held, thirds 30 @ 81 



arc taking the undergrades, or some- 
thing a little cheaper than fhe highest 
priced goods. High prices have cur- 
tailed consumption somewhat, and 
some jobbers or cutters, while not re- 
ceiving direct any more butter than 
they usually obtained, have a little 
surplus occasionally, for which they 
must find outside sale, simply because 
their outlet has been reduced. Deal- 
ers in most instances are anxious to 
keep sold out, and, tchile adhering to 
the market value, there is a more or 
less nervous feeling noticeable. 

A small car of butter teas received 
from California. It is put up in boxes 
of about 66 lbs. The quality was pro- 
nounced very fine and quotably about 
300. 

A small consignment of butter is 
expected to be received from Neio 
iJexico to-day or to-morrow. 

Storage butter in good demand. 
June Extras are salable at 34 (a; 
3440. ; some fancy, special lots are held 
above. Fii'sts are quotable at 33 @ 
33i. It is claimed by dealers there 
is nothing to be had under about 320. 

E.itras in fresh creameries met icith 
a fair demand, and it is not easy to 
secure desirable makes. They are 
quotable at 36^, and occasional small 
lots of .special brands brought a slight 
premium. 

Extra firsts ivhieh grade 91 points 
and up are salable at 36<j;. 

Firsts in fresh creameries are quot- 
able within the range of 34 (iJ 3.5K. 
Anything siveet and suitable for table 
use is picked up readily. 

Seconds in creameries are very 
scarce. Can not hear of any transac- 
tions, and quoted nominally about 31 
and 320. 
Creamery extras, fresh, per 

lb 36i 

Extra firsts 30 

Firsts 34 m 35i 

Seconds 31 Oi .32 

PUBLICATION OF BUTTER QUOTATIONS. 

New York. — The Xew York butter quotation is published in The 
Producers' Price-Current, a daily publication issued by a market- 



MARKETING CREAMERY BUTTER. 25 

reporting agency. This quotation is establislied by them and is used 
quite generally by the creameries of Minnesota, Iowa, and other 
States shipping to the New York market. 

Chicago. — The Chicago butter quotation is published in the Daily 
Trade Bulletin, which is devoted to the produce markets. This quo- 
tation is used quite extensively by Iowa, Wisconsin, and other cream- 
eries selling their butter on this market. 

Philadelphia. — At the close of each daily meeting of the Phila- 
delphia Produce Exchange a vote is taken by the members upon the 
condition of the butter market and the quotation for that day. This 
price is marked upon the board and becomes the market quotation. 
This quotation is published in the daily and trade papers by au- 
thority of the exchange as the official quotation. It is used as the 
basis of sales to retailers and also for purchases of butter from nearby 
creameries. 

Boston. — The Boston butter quotation which is used as a trading 
basis between New England creameries and the Boston butter dealers 
is published in the weekly market report issued by the Boston Cham- 
ber of Commerce. A committee of the Chamber of Commerce estab- 
lishes a quotation on Wednesday of each week. A daily quotation is 
also published by the Boston Fruit and Produce Exchange in the 
form of a mimeographed sheet, which is distributed to its members 
and serves principally as a guide for local trading. 

San Francisco. — The butter quotation at San Francisco is estab- 
lished by the San Francisco Wliolesale Dairy Produce Exchange 
through the bids and offers on the " call," and is published by the 
Daily Commercial News as the official quotation for that territory. 
The markets at Los Angeles, Portland, Seattle, Spokane, and Salt 
Lake City are influenced to some extent by the San Francisco 
quotation. 

THE ELGIN QUOTATION. 

The Elgin quotation is established by the Elgin Board of Trade at 
Elgin, 111. At one time this town was the center of the creamery 
industry of northern Illinois, which embraced a territory known as 
the Elgin District. The creameries throughout this territory inau- 
gurated a practice of offering their butter for sale to buyers at meet- 
ings of the Elgin Board of Trade, which Avere attended by butter 
dealers from Elgin, Chicago, and other cities. For a number of 
years the quotation established for creamery butter by the Elgin 
board was the basis at which creameries generally sold their butter 
and also purchased their butter fat. Very little creamery butter is 
produced within the territory surrounding Elgin at the present time, 
as the sweet cream and milk supply is contracted for by condenseries 
and Chicago milk distributors. At present there are a few persons 



26 BULLETIN- 456, V. S, DEPARTMENT OF AGRICULTURE. 

who are interested in the operation of the Elgin board ^nd every 
Saturday at noon they meet for the purpose of transacting a feAv 
sales, which establish a quotation for the following week. The Elgin 
board recognizes but one grade of butter, namely, an " extra," which 
is required to score 93 points. The rules of the board do not provide 
a penalty for the offering of butter on the board which is lower than 
an " extra," and the buyer may reject his purchases if he finds the 
butter to be of a lower grade. 

Throughout Wisconsin, Illinois, Iowa, Indiana, and Ohio many 
creameries base the selling price of their butter upon the Elgin 
quotation and to some extent also the buying price of butter fat. 
Many distributors in Cleveland, Buffalo, Baltimore, and other cities, 
particularly those of the South, which formerly obtained their sup- 
plies from the Elgin district, prefer to have their purchases based on 
the Elgin quotation. This quotation is infrequently used as a trading 
basis by the large centralizing creameries. 

MARKET DISTRIBUTION OF CREAMERY BUTTER. 

There are various channels of trade through which butter may 
pass from producer to consumer. The general custom of country 
creameries in shipping butter to the larger markets is to consign it 
to the receiver or to contract with the receiver for the sale of the 
butter on the basis of the market quotation. Often the receivers 
send out field representatives who go among the creameries and 
solicit their output. 

It is a common practice among creameries to draw a sight or de- 
mand draft against the consignee and to attach this to the bill of 
lading which is passed to their local bank for collection. By so 
doing, the creamery obtains an advance credit of $10 to $15 on each 
63-pound tub of butter in the shipment. 

The jobbers in buying from the wholesale receivers inspect the 
butter and buy such grades and quantities as they require for their 
trade. Nearly all wholesale receivers also do a jobbing business 
and supply retail stores. A considerable portion of a wholesale re- 
ceiver's business consists of car-lot and less-than-car-lot sales to dis- 
tribute in his own or in other large markets. 

The tendency among the larger creameries, and to some extent 
also among the smaller, is to distribute directly to the retailer, by 
establishing branch distributing offices or by contracting with dis- 
tributing agents to handle their account in a certain territory. In 
some cities delivery equipment is furnished the distributor by the 
creamery to develop the business and facilitate the distribution of 
the product. Some dealers have their salesmen take orders and the 
delivery is made later. (See fig. 14.) Others who handle private 
brands of print butter, also eggs and cheese, have their salesmen make 



MARKETING CREAMEEY BUTTER. 



27 



the deliveries at the time the order is taken, thus effecting very eco- 
nomical distribution of small orders. In some cities, old established 
firms use the telephone extensively in soliciting orders. Deliveries 
are made to the down-town stores and markets daily, and to the 
suburban stores two or three times a week. 

DISTRIBUTORS* MARGINS ON BUTTER. 

The costs of market distribution were investigated in each of the 
cities visited which included the larger and more important whole- 




FiG. 14. — The storage of butter tends to stabilize butter prices. About one-tenth of the 
total annual production is placed in storage where its quality is preserved at a 
temperature of zero Fahrenheit or below. 

sale and jobbing markets in the United States. It was found that the 
margins taken by butter distributors, in general depend upon the 
character of the business done; that is, whether wholesale or retail, 
and such factors as volume of business, extent of charged accoimts, 
competition, and general conditions of the market. The wholesale 
receiver sells large lots usually at a margin of from one-fourth to 
three-fourths cent a pound with a fair average of one-half cent per 
pound. The jobber who distributes bulk packages or prints, em- 
plojs salesmen, maintains delivery equipment, and extends credit 
to the retailer, usually receives from 1^ to 24 cents per pound gross 
margin for rendering this service. The gross margin is not all net 



28 



BULLETIN" 456, U. S. DEPARTMENT OF AGRICULTURE. 



profit, for a large amount of capital is required to conduc^ a whole- 
sale or jobbing business and the expenses are considerable. (See 
Fig. 15.) 

The margins taken by the retailer shoAv wider Aariations than 
those for other distributors. Butter frequently is handled by some 
stores on a Aveek-end day at cost, for the purpose of attracting cus- 
tomers as an adA-ertising feature. The usual margin taken by cash 
stores and chain stores will vary from 3 to 5 cents, depending upon 
the ruling retail price of butter. The retailer with a small butter 
business, who has to maintain an expensiA'e deliAery serA'ice and 
carry numerous credit accounts, often takes a margin of 5 to 7 cents 
to coA'er costs and profit. 




Fig. 15. — The distributing equipniont of wholesulevs aud jobUfrs of butter may bo quite 
extensive. Often salesmen use automobiles wlien taking orders and auto trucks or 
wagons are used in making delivery. 

COLD-STORAGE METHODS AND FACILITIES. 

A considerable amount of butter is ])lace(l in cold storage during 
the season of surjilus })r()duction, Avhich begins about April 1 and 
extends into August, AA'hen the receipts of fresh butter on the mar- 
kets are larger than the requirements for the consuming trade. It 
is a well-recognized fact that storage of butter is an economic ne- 
cessity, first, as a means of conserA^ng its quality and, second, as a 
factor in equalizing the price throughout the A'arious seasons of the 
year. The better grades of buttei- are in greatest demand for storage 



MARKETING CREAMERY BUTTER. 29 

purposes. Many distributors who have a regular established trade 
make a practice of storing butter in order to be assured of a supply 
during the winter season. Other dealers store large quantities of 
butter as a speculatiA'e investment. 

The principal places of storage in the eastern United States are 
Chicago, New York, Boston, Philadelphia, and Omaha. Among 
other cities at which considerable quantities are stored are St. Paul, 
Duluth, Buffalo, Pittsburgh, St. Louis, Kansas City, New Orleans, 
and Norfolk. On the Pacific coast San Francisco, Portland, Seattle, 
Spokane, Salt Lake City, and Los Angeles are the principal points 
of storage. Owing to its geographical location, which permits easy 
reshipment to the East or South, Chicago is the greatest center for 
the storage of butter. Omaha is becoming a large storage center 
for butter made by the centralizing plants in that section. A tem- 
perature of zero Fahrenheit or below usually is maintained in butter- 
storage rooms. 

REPORTS OF HOLDINGS IN STORAGE. 

There are approximately 50 cold-storage warehouses that are mem- 
bers of the American Warehousemen's Association which report at 
the close of each month the amount of butter and eggs in their 
storages. This report is issued by the secretary of the association. 
These warehouses are believed to carry approximately 50 per cent of 
the total butter in storage. 

On August 1, 1916, the Office of Markets and Rural Organization 
of the Department of Agriculture began to issue monthly reports 
of the holdings of creamery butter in storage. Information for 
these reports is obtained from the cold-storage warehouses on blanks 
furnished by the department. Statistics of the cold-storage holdings 
of butter in 1914 indicate that approximately 18 per cent of the 
butter placed in storage is received into storage in May, 33 per cent 
in June, 23 per cent in July, and 7 per cent in August, or during 
these four months 81 per cent of the butter stored is delivered into 
storage. Deliveries out of storage were more gradual, approxi- 
mately 11 per cent being removed in August, 8 per cent in Septem- 
ber, 9 per cent in October, 12 per cent in November, 15 per cent in 
December, 11 per cent in January, 9 per cent in February, 11 per 
cent in March, and 5 per cent in April. The deliveries out of storage 
during each of eight months (September to April, inclusive) exceed 
the receipts into storage, therefore the period of storage for various 
lots is variable. The average length of storage is approximately 6.2 
months. 

Legislation in regard to the cold storage of butter differs in the 
various States. Some States require that the packages be stamped 



30 BULLETIN 456, U. S. DEPARTMENT OF AGRICULTURE. 

with the dates the butter is placed in storage and removed from 
storage, while others require only the date of removal. Many States 
have no such requirements. 

THE RATES FOR STORAGE OF BUTTER. 

The rates for storage of butter vary in different cities and with 
different storages. The following schedule is found to prevail with 
many cold-storage companies: 

12^ cents per hundredweight per month for less than car lots. 
10 cents per hundredweight per month for car lots. 
25 cents per hundredweiglit per month for small lots stored 
for 30 days or less. 

The customary rate with small storages is one-fourth of a cent 
per pound per month. 

FINANCING OF STORAGE OPERATIONS. 

Formerly it was customary for storage operators to negotiate loans 
on butter through banks, but now many cold-storage houses handle 
the loans themselves and hold the warehouse receipt as collateral 
security. The usual interest rate charged on loans is 6 per cent. The 
charges for insurance range from $4 to $15.50 per $1,000 valuation, 
depending upon the construction, location, and equipment of the 
building. These are based upon a yearly period and rebates are made 
when the butter is carried for a shorter time. The amount loaned 
on butter varies from 60 to 70 per cent of its value. It is often con- 
venient for butter distributors to deal directly with a storage com- 
pany in obtaining loans and insurance, and storage companies acting 
as agents in these lines facilitate their business and fill their rooms. 
They can also handle smaller accounts and make larger advances, 
as they have the butter in custody. 

MARGINS ON STORAGE BUTTER. 

The margins on storage butter depend upon a number of factors, 
such as the keeping quality of the butter, the marginal difference be- 
tween the price paid and the market value of the butter when it is 
removed from storage, the costs of storage, and the expense of han- 
dling it. It is customary to estimate the carrying charges roughly 
at one-fourth cent per pound per month. The following statement 
illustrates the approximate costs for interest, storage, and insurance : 

Interest on 100 pounds butter at 28 cents for six montlis at G per cent $0. 84 

Storage on 100 pounds butter at 10 cents per liundredweight per month 

for six months .GO 

Insurance at rate of 42 cents per .$100 for six months . 1176 

Cost per 100 pounds for 6 months .$1. .^576 

Cost per 100 pounds per month ,259G 



MARKETING CREAMERY BUTTER. 31 

BRANDS AND TRADE-MARKS FOR BUTTER. 

Within recent years there has been a growing tendency to establish 
private brands and trade-marks for butter. The adoption of a pri- 
vate brand and the registration of it gives a distributor or creamery 
a basis for working up a special demand or trade, also for carrying 
on an advertising campaign. Designs and names which are intended 
as trade-marks may be registered in some States, and with the United 
States Patent Office at Washington, D. C. 

STATE BRANDS FOR BUTTER. 

Several States have adopted State brands for butter, the purposes 
of which have been varied. Oregon and Washington some years 
ago adopted a system of State brands which w^as intended to be used 



xxv^^^g^^ ^f!% 




» 



Al 

Fig. 16. — Trade mark for "A 1" grade of Minnesota State Brand Butter. 

only on butter produced within the State. More recently the States 
of Minnesota, Iowa, and Michigan have provided for State brands 
which are intended to convey a guaranty of purity and quality. 

STANDARDS FOR STATE BRAND BUTTER. 

Minnesota was the first State to pass a law providing for the use 
of a State brand by butter and cheese factories when certain condi- 
tions are complied with. (Minnesota general laws of 1913, ch. 366.) 
The Minnesota State brand is patterned to some extent after the 
requirements of the Government export brand of Denmark, known 
as the " Lur " brand. The designs adopted for the two Minnesota 
brands are alike except in the lettering (Al) or (B). (See fig. 16.) 
The requirements for the use of the "Al " brand are more strict than 
for the " B." Following are the requirements for the use of the Al 
brand, as published in the Fifteenth Biennial Report, 1914, p,. 23, of 
the Minnesota Dairy and Food Commissioner, 



32 



BULLETIN 456, U, S. DEPARTMENT OF AGRICULTURE. 



Score of butter or cheese to be 94 nine times out of twelve in 1 year. Score of 
butter or cheerse can never be below 93. Factory to .score 90 or befter. Sani- 
tary machinery, piping, and equipment. Score of 94 for the butter made 15 
days prior to application for license. Farm dairy to score 60 points or better 
according to score card provided by dairy and food commission. Cows tested 
for tuberculosis 6 months previous to issuing license and every 2 years there- 
after. Cream to be pasteurized. Cream must be received sweet and test less 
than 0.2 per cent acid. Use of neutralizers in cream not permitted. When a 
license is granted a list of the patrons must be furnished the dairy and food 
commissioner, with address of each, and statement that cows have been tested 
for tuberculosis. Factory must report number of pounds of butter manufac- 
tured each month. Brand is to be used only at factory. 

The rules for grade B permit a lower score and the use of milk 
and cream from cows which have not been tested for tuberculosis. 

The State of Iowa (Supplemental supplement, Code of Iowa, 1915, 
section 2515-f) in adopting a State brand or trade-mark (see fig. 

17) for Iowa butter placed it 
in charge of an executive com- 
mittee of five members, consist- 
ing of the president of the Iowa 
State Dairy Association, the 
president of the Iowa State 
Buttermakers' Association, the 
dean of the division of agricul- 
ture of the Iowa State College 
of Agriculture and Mechanic 
Arts, the professor of dairying 
of the same institution, and the 
dairy and food conunissioner of 
the State of Iowa, who have 
control of the use of the trade- 
mark under such rules as may be considered necessary. The follow- 
ing rules and regulations governing the use of the Iowa butter trade- 
mark were issued in Bulletin No. 16 of the Iowa dairy and food 
commission, December, 1915 : 

1. Butter sold under the trade-mark shall be manufactured in a creamery 
which meets the requirements of the Iowa sanitary law. Such creameries 
shall obtain a score of 85 or above, 100 being perfect, scored in accordance with 
trie Iowa State score card for creameries. 

2. Tlie butter shall obtain a score on the quality of not less than 93 points. 
100 being perfect, on 75 per cent or more of the scoring. A creamery obtain- 
ing a score on butter below 92, or a creamery that has more than 25 per cent 
of its scoring below 93, shall forfeit its right to the use of such trade-mark 
until such time as the creamery is again in a position to meet the necessary 
requirements. 

3. All butter marked with the Iowa State mark shall comply with the Iowa 
State standards and contain not less than 80 per cent of butter fat, and shall 
contain less than 16 per cent of moisture. No preservative, neutralizer, or 




Fig. 17.^Trado-mark for Iowa State Brand 
I'.uttor. 



MAEKETING CREAMERY BtJTTER. 33 

adulterant shall be added to but tor or to the cream from which the butter is 
to be manufactured. 

4. Butter sold under said mark shall be manufactured from cream which has 
been pasteurized, either in the form of milk or cream. Pasteurization shall 
consist in heating the milk or the cream to a temperature of not less than 140° 
F. and holding it above 140° F. for a period of not less than 20 minutes, or 
heating the milk or cream to a temperature of not less than 180° F. when flash 
is applied. 

5. If the butter Is solid packed in tubs, the tubs shall bear the Iowa State 
mark on two opposite sides,, the marks shall be placed immediately below the 
upper hoop or hoops, said mark to be 3 inches in diameter. In addition to 
the markings as stated, the top surface of the butter shall bear an imprint of 
the said mark, this imprint to be 5 inches in diameter and the imprint into the 
butter shall be from one-sixteenth to one-eighth of an inch in depth. Butter 
in boxes either solid packed or in print shall bear similar markings on both 
ends of the boxes as those placed on the outside of tubs. A similar imprint 
shall be made into the butter if solid packed. 

6. The date of manufacture of the butter shall be marked on the outside 
of the tub or box close to the State mark, in letters not less than one-half 

12-5. 
an inch in height, the same being placed in the following manner : — ^ — 

The figure 12 designates the number of the month, the figure 6 designates the 
day of the month, and the figure 5 designates the number of the churning on that 
day. Thus for the above markings the reading would be that the butter was 
manufactured on the twelfth month, sixth day, and was the product of the fifth 
churning. 

7. Parchments for print butter may be marked with the State trade-mark. 
The size of such marking shall be 2 inches in diameter. At this time the board 
does not require the marking of the date on individual prints. 

8. Application, in writing, shall be made to the State dairy and food commis- 
sioner, who, after having satisfied himself that the manufacturer is qualified 
to comply with all the requirements, will issue a permit to use the State mark 
and also furnish copies of the mark and necessary equipment to the applicant. 
No other stamp or markings shall be used unless the same shall meet with the 
approval of the State dairy and food commissioner. 

The State of Michigan by an act of the legislature (Michigan pub- 
lic acts . . . 1915, public act No. 53) provided for a Michigan State 
brand butter commission, which has authority to adopt rules, regu- 
lations, and specifications for Michigan State brand butter. The 
commission in its bulletin No. 1 established the following provisions, 
which became effective January 1, 1916 : 

Section 1. Applications. — Any person, firm, or corporation desiring to use 
the brand or label provided for in the above-named act, in the manufacture 
or sale of butter, shall make written application on blanks to be furnished by 
the dairy and food department, for a license therefor to the dairy and food 
commissioner at I^ansing, which application shall describe by location and 
name the creamery or factory in which such butter is to be manufactured, and 
give such other information as may be required. A license shall be granted 
to such person, firm, or corporation to use such brand or label at the factory 
described in the application if on investigation by the dairy and food com- 
missioner, his deputy or duly authorized assistants, it appears that all the 



34 BULLETIN 456, U. S. DEPARTMENT OF AGRICULTURE. 

provisions of act No. 53, P. A., 1915, and the rules, regulations, ai^ specifica- 
tions of the commission have been complied with. Such license so granted 
may be revoked by the said commissioner if any of the provisions of the above- 
named act, or of the rules, regulations, and specifications of the commission 
have not been complied with. Such license so granted shall not be transferable. 

Sec. 2. Labels.^ — As provided in section 4 of the above-named act the dairy 
and food commissioner will furnish to those entitled to the use of the brand 
or label such labels or stamps or other means of imprinting such trade-mark or 
brand upon the manufactured product or the receptacles containing the same. 

Sec. 3. Samples. — Any person, firm, or corporation to whom the use of the 
brand or trade-mark has been granted shall, whenever called upon, submit a 
sample or samples of the butter manufactured by any such person, firm, or 
corporation for scoring, grading, or examination to the dairy and food depart- 
ment. 

Sec. 4. License. — The license referred to in the first section of these rules, 
regulations, and specifications will be and is issued on the express condition that 
the person, firm, or coi-poration to whom such license has been granted shall 
comply with the following: 

(a) Sanitation. — Maintain proper and satisfactory sanitary conditions in the 
plant in which the butter is made, and proper and satisfactory sanitary sur- 
roundings. 

(b) Raw material. — That no milk or cream be received which is to be made 
or is made in butter, upon which the Michigan brand or trade-mark is to be 
used, that will not comply with the provisions of act No. 222, P. A., 1913. 

(c) Pasteurization. — That the butter shall be made from milk or cream 
that has been pasteurized at a temperature not less than 145° F., and shall be 
held at that temperature for 20 minutes, or to a temperature not less than 170° 
F. if not held. 

(d) Grade of butter. — That the butter shall be of the grade of "commercial 
extra " (92-93) score, or higher, for not less than 75 per cent of the scorings on 
samples collected by the dairy and food department, and while the butter is 
fresh. " Fresh " butter being here defiued as butter less than 30 days old from 
the date made and providing same has been held at a temperature lower than 
55° F. after being made. In no instance shall the butter score less than 91 
points — 100 being perfect — while " fresh," according to the above definition. 

(e) Composition. — All butter upon which the State trade-mark is to be used 
shall contain not less than 80 per cent fat, and shall contain less than 16 per 
cent water ; the butter shall have a uniform salt content ranging from not less 
than 2* per cent or more than 3i per cent. 

(f) Color. — The color shall be of the highest June sliade, uniform, and of 
the same shade at all seasons. 

(g) Adulterants. — No preservatives (except pure ccunmon butter salt), neu- 
tralizers, or adulterants shall be added to the milk or cream from which such 
butter is made and which is to be sold under the Michigan trade-marlv. 

(h) Creamery plant score. — ^The creamery or plant in which the butter is 
made shall receive a mininmm score of 85 points — 100 being perfect — embody- 
ing the following: (1) General appearances of premises, (2) floors, (3) drain- 
age, (4) i-efrigeration, (5) machinery, (6) water, (7) raw material. 

(i) Reports. — Make a monthly report to the dairy and food department on 
bliinks to be furnished by said department not later than the last day of the 
month following. 

1 .V revised trade-mark for Mlchljian State brand butter was beinjj designed when this 
bulletin went to press. 



MARKETING CREAMERY BUTTER. B5 

(j) Labeling. — Label aud mark all receptacles containing butter upon which 
the State trade-mark is to be used in accordance with the special instructions 
that will be issued to every creamery to whom a license has been granted with 
such labels, stamps, or other means of imprinting the trade-mark, or such other 
information as may be required by the dairy and food department. 

(k) Thermostat. — Install in connection with all pasteurizing machinery a 
thermostat or recording thermometer, and file all charts for inspection or submit 
same, if requested, to the dairy and food department. 

(1) To whom shipped. — Whenever a creamery that has been granted a 
license to use the State trade-mark changes its market or outlet for its product 
it shall promptly advise the dairy and food department of such change, and 
otherwise keep the department fully informed with regard to whom their butter 
is shipped or sold. 

(m) Change of butter makers. — Whenever a change of butter makers is con- 
templated at any creamery using the Michigan State butter brand trade-mark, 
and before such change is made, the dairy and food department shall first 
be advised. If a change is made without the consent of the department the 
right to use the brand or trade-mark shall and will at once be revoked, until 
such time as it takes for the new butter maker to demonstrate that he is com- 
petent to make the grade of butter required under these rules, regulations, and 
specifications. 

ADVERTISING AND SALESMANSHIP. 

Advertising and salesmanship are two important factors in the 
successful marketing of a product. Advertising has been defined as 
" silent salesmanship," and there is no doubt that judicious and 
appropriate advertising has a very suggestive and often convincing 
influence upon the customer, and when properly used may greatly in- 
crease the demand for a product. The results obtained from adver- 
tising campaigns made by the large creameries and distributors are 
evidence of their value. Among the various methods employed are 
advertisements of private brands of butter in newspapers, on street- 
car signs, bill boards, retail show cards, and demonstrations at retail 
stores, food shows, and by house-to-house canvassing. 

Salesmanship is the art of merchandising and is the basis of suc- 
cessful marketing. Its importance often has not been appreciated by 
the country creameries, and their butter has been obliged to compete 
not only against the products of other creameries and the manufac- 
turers of butter substitutes, but also against the salesmanship em- 
ployed in pushing the sale of these branded and trade-marked 
products. In a business with a selling organization it is generally 
recognized that salesmanship gets business, while service, quality, 
and price hold it. In marketing the products of a small country 
creamery, which does not have a private brand and in which the 
identity of the manufacturer of the product is lost in the wholesale 
distribution of it, it is impossible for a creamery to employ either 
advertising or salesmanship in the ultimate distribution. With sell- 
ing organizations for distributing private brands or State brands it is 



36 BULLETIN 456, U. S. DEPARTMENT OF AGRICULTURE. 

different, and both advertising and salesmanship may be .employed 
effectively. It is highly important in marketing a branded product 
that a certain standard of quality be maintained in the product, that a 
distinctive brand be adopted, and a sanitary and attractive package 
be used. 

SUMMARY. 

A knowledge of the various market requirements, marketing 
methods, and marketing facilities is essential for the successful mar- 
keting of creamery butter. 

Particular attention should be given to the market requirements 
as regards quality of butter and size and style of packages. Critical 
markets require a clean-flavored, firm-bodied, well-made piece of 
butter for which they pay the highest prices. Butter of inferior 
quality is discriminated against by critical buyers and usually sells 
at prices considerably below the better grades. 

The use of neat and attractive containers, standardized to a uni- 
form size and style, is highly desirable both for local and foreign 
markets. Carelessly packed butter has not only a poor appearance 
but also usually brings a lower price. 

The branding of bulk butter packages (tubs and cubes) with the 
gross, tare, net weight, and churning number greatly facilitates the 
handling and inspection of butter in the market. 

The use of consumers' packages for butter is increasing. A 
standardization of these, particularly the cartons, is especially 
desirable. 

Market grades for butter have been established by a number of 
wholesale produce organizations. lA-liile these conform quite closely 
to a uniform standard it is generally conceded that butter which will 
pass in some markets for a certain grade may be classed differently 
in another, owing to a different standard of quality which the butter 
inspector may use. 

The employment of butter inspectors and the maintenance of 
market inspection is at present provided in the wholesale markets by 
the organizations of wholesale butter distributors. It has been sug- 
gested that the promulgation of Government grades for butter and 
the maintenance of a Federal inspection service would facilitate 
market distribution and the establishment of more accurate quota- 
tions on creamery butter. 

Quotations for butter are determined in most markets by market- 
reporting agencies. Among the market quotations which have the 
widest trading influences are those established at New York, Chicago, 
and Elgin, 111., and San Francisco. 

The distribution of butter in the larger cities is generally effected 
by wholesale distributors commonly termed wholesale receivers or 



MARKETING CREAMERY BUTTER. 37 

jobbers, who supply the retailers, hotels, and restaurants. The 
gross margins taken by butter distributors depend upon a number of 
factors, such as kind of business, volume of business, extent of charge 
accounts, competition, and general market conditions. 

Approximately one-tenth of the market receipts of butter is placed 
in public cold storage. Chicago, because of its location, is considered 
the most important place for the storage of butter. The cost of 
financing and handling butter in storage is approximately one-fourth 
cent per pound per month. 

Regular, scheduled refrigerator rail service is provided for butter 
in the more highly developed dairy sections. Express service often 
is employed for shipping to near-by markets and may be used in 
combinations with refrigerator freight service in reaching the more 
distant markets. Cooperation among creameries has proved of value 
in obtaining and using refrigerator service where creameries are 
located in close proximity to each other. 

State brands for butter which creameries are permitted to use 
when they have complied with State requirements have been adopted 
by Minnesota, Iowa, and Michigan. They are intended to convey a 
guaranty of purity and quality in the butter which will be of mutual 
benefit to both the producer and the consumer. 

The establishment of brands is essential for effective advertising 
or in retaining the identity of the manufacturer of a product. Ap- 
propriate advertising and salesmanship are also two vital factors in 
successful market distribution. In marketing a branded product 
it is highly important that a sanitary and attractive package be used 
and that a certain standard of quality be maintained. 



PUBLICATIONS OF THE U. S. DEPARTMENT OF AGRICULTURE 
OF INTEREST TO DAIRY AND CREAMERY MEN.^ 

AVAILABLE FOR FREE DISTRIBUTION BY THE DEPARTMENT. 

The Application of Refrigeration to the Handling of Milk. (Department 

Bulletin 98. ) 
Bacteria in IMilk. (Farmers' Bulletin 490.) 
Farm Butter Making. (Farmers' Bulletin 541.) 
The Production of Clean Milk. (Farmers' Bulletin 602.) 
Removal of Garlic Flavor from Milk and Cream. (Farmers' Bulletin 608.) 
Ice Houses and the Use of Ice on the Dairy Farm. (Farmers' Bulletin 623.) 
A Simple Steam Sterilizer for Farm Dairy Utensil.s. (Farmers' Bulletin 748.) 
Suggestions for the Manufacture and Marketing of Creamery Butter in the 

South. (Secretary's Circular 66.) 

FOR SALE BY THE SUPERINTENDENT OF DOCUMENTS, GOVERNMENT PRINTING 
OFFICE, WASHINGTON, D. C. 

The Cost of I'a.-^teurizing Milk and Cream. (Department Bulletin 8.^.) Price 
5 cents. 

The Production and Consumption of Dairy Products. (Department Bulletin 
177.) Price 5 cents. 

Fermented Milks. (Department Bulletin 319.) Price 5 cents. 

Marketing Eggs Through the Creamery. (Farmers' Bulletin 445.) Price 
5 cents. 

Studies Upon Keeping Quality of Butter: Canned Butter. (Bureau of Animal 
Industry Bulletin 57.) Price 5 cents. 

Investigations in Manufacture and Storage of Butter: 1. Keeping qualities of 
butter made under different conditions and stored at different tempera- 
tures with remarks on scoring of butter. (Bureau of Animal Industry 
Bulletin 84.) Price 10 cents. 

Manufacture of Butter for Storage. (Bureau of Animal Industry Bulletin 148.) 
Price 5 cents. 

Normal Composition of American Creamery Butter. (Bureau of Animal In- 
dustry Bulletin 149.) Price 5 cents. 

Factors Influencing Change in Flavor in Storage Butter. (Bureau of Animal 
Industry Bulletin 162.) Price 10 cents. 

Paraffining Butter Tubs. (Bureau of Animal Industry Circular 130.) Price 
5 cents. 

Whey Butter. (Bureau of Animal Industry Circular IGl.) Price 5 cents. 

Increasing Creamery Profits by Handling Special Products and Utilizing By- 
products. (Bureau of Animal Industry Circular 188.) Price 5 cents. 

Temperature of Pasteurization for Butter Making. (Bureau of Animal Indus- 
try Circular 189.) Price 5 cents. 

Plan for Small Dairy House. (Bureau of Animal Industry Circular 195.) 
Price 5 cents. 

Simple Butter Color Standard. (Bureau of Animal Industry Circular 200.) 
Price 5 cents. 

Utilization of Exhaust Steam for Heating Boiler Feed Water and Wa.sh Water 
in Milk Plants, Creameries, and Dairies. (Bureau of Animal Industry Cir- 
cular 209.) Price 5 cents. 

Legal Standards for Dairy Products. (Bureau of Animal Industry (circular 
218.) Price 5 cents. 

Chemical Testing of Milk and Cream. (Bureau of Animal Industry Miscella- 
neous.) Price 10 cents. 
38 



ADDITIONAL COPIES 

OF THIS PUBLICATION MAY BE PROCURED FROM 

THE SUPERINTENDENT OF DOCUMENTS 

GOVERNMENT PRINTING OFFICE 

■WASHINGTON, D. C. 

AT 

10 CENTS PER COPY 
V 







Q0DDfl^l3Dt.7 



